2007 04 06 163146 Chapter 7 1

A Inventory $55,500 B Total Current Assets $127,500 C Building $249,000 D Total Assets $337,500 E Accounts Payable $15,000 F Mortgage Payable $97,500 G Total Liabilities $135,000 H Retained Earnings $97,500 I Total Stockholders’ Equity $202,500 J Total Liabilities and Stockholders’ Equity $337,500

6. Note 8 states Harnischfeger’s allowance for doubtful accounts. Compute the ratio of the allowance to gross receivables (receivables before the allowance) in 1983 and 1984. What would the allowance have been if the company maintained the ratio at the 1983 level? How much did the pre-tax income increase as a result of the changed ratio in 1984?

6. Note 8 states Harnischfeger’s allowance for doubtful accounts.  Compute the ratio of the allowance to gross receivables (receivables before the allowance) in 1983 and 1984.  What would the allowance have been if the company maintained the ratio at the 1983 level?  How much did the pre-tax

The ledger of Wainwright Company at the end of the current year shows Accounts Receivable $78,000; Credit Sales $810,000; and Sales Returns and Allowances $40,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

1. Coming out of the Constitutional Convention in Philadelphia, different views of federalism were carried: (1) Alexander Hamilton believed that the national government was the superior and leading force in political affairs, since the people created it and its laws were the “supreme law of the land;” (2) Thomas Jefferson believed that “the people” were the ultimate sovereigns, and since the states was a result of agreement among the states, the states were supreme over the national gov’t.

Each Friday, the cash clerk records the amount of cash receive and deposit the money in the bank account. Each quarter, the controller requests information from the bank necessary to prepare bank reconciliation.

year 1 net income would do). Then, its year 2 opening net assets are $276.36,

c. Determine the firm’s EPS at the above debt levels. If EPS goes up with the higher debt level,

To prepare a comprehensive balance sheet and Single-Step Income Statement presented in good form and derived from a list of various accounts. The amounts relative to each account will be given and the student will learn to determine whether an account is a balance sheet account or a

c. Explain what other methods you could have used to find the cost of debt for AirJet Best Parts Inc.(10 pts)

The budget for this facility is $75K a month. Out of that employees, rent, utilities, equipment repairs, supplies, and remaining vendors are paid. The monthly balance in the account is $15K. This amount has been consecutive in the last two

I arrived to the location and I check the directory to make sure I was in the right building. I found Pearson in the Directory with 200 listed and confirmed that I was at the write address and just needed to locate the Pearson testing site. I entered the elevator and hit option 2, when I left the elevator onto floor 2 I was on the wrong floor. I hit the button to get back on the elevator and went back to the lobby. I walked around looking for assistance and literally ran into the Pearson testing site was on the lobby level. The same level that I entered the entrance of the building on. I thought 200 meant elevator floor 2 would get on the elevator and go to the 2nd floor to find Suite 200. I walked into the testing room up to the counter

Net Sales EXPENSES: 801 Cost of Goods Sold Per Audit 12 -31-08 Per Books 12-31-09 3,447,472 (26,530) 3,420,942 3,857,549 (28,318) 3,829,231 1,420,933 1,651,366 Debit 3,857,549 (28,318) 3,829,231 C-1 18,000 #3 C-1 928 #4 I-1 I-1 1,900 #14 150 #16 I-1 I-2 Gross Margin OPERATING EXPENSES: 820 Wage and Salary Expense 821 Payroll Tax Expense 822 Depreciation Expense 823 824 825 826 827 828 829 830 831 832 833 834

Chapter 7: Prospective Analysis: Valuation Theory and Concepts Copyright (c) 2008 Thomson South-Western, a part of the Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Chapter 7: Prospective Analysis: Valuation Theory and Concepts Palepu & Healy Key Concepts in Chapter 7 • Forecasts (Ch. 6) are converted into estimates of value.

April balance of the $4,000, so beginning cash was $4,000.Carmen got cash sales revenue $7,400, less paid cash $1,510 for employee wages, less paid replenishment inventory $2,900,less rent for three-month $1,800, less paid cash $1,800 for sewing machine. Finally the ending cash was $3,390. According to above details , the statement of cash flow for the three-month operations of Ribbons an’ Bows, Inc., can be created as follows.